Dry Rot, Mold, Mildew, Fungus

I’ve become a fan of the TV show Bar Rescue.

A failing bar agrees to let a TV crew and an expert in bar operations in for a makeover.  I think its fun and it gets me thinking of stuff.

A recent episode had the bar turned upside down (as always).  Then it was discovered that the support beams of the building were rotten.  The show made the claim that every year in America there is over $17 billion in damage caused by dry rot.

I don’t know about that.

I do know that rot, mold, and mildew damage is not usually covered by property insurance.

Most commercial property insurance policies included the following exclusions:

-Loss due to virus, bacteria, and other microorganisms.

-Fungi, wet rot, dry rot, bacteria.

While we are at it, most (read “all”) property insurance policies exclude:

-Wear and tear

-Rust or other corrosion, decay deterioration, hidden or latent defect, or any quality in property that causes it to damage or destroy itself.

-Settling, cracking, shrinking or expansion

-Nesting or infestation or discharge or release of waste products or secretions by insects, birds, rodents or other animals.

Now, different insurance policies have different wording and different exclusions and endorsements.  If you have a loss caused by one of the above I would spend some time going over your policy.  Do not bet the farm though.

Certainly, don’t figure that insurance is going to pay for what can be called poor maintenance – or deferred maintenance.

Regular inspections of all your locations and buildings will uncover these issues before things get too bad.